NetApp Inc (NTAP) 2025 Q2 法說會逐字稿

Good day and welcome to the NetApp second quarter of fiscal year 2025 earnings call.

美好的一天，歡迎參加 NetApp 2025 財年第二季財報電話會議。

All participants will be in a listen-only mode. Should you need assistance? Please signal a conference specialist by pressing the star key followed by zero.

所有參與者將處於僅聽模式。您需要協助嗎？請按星號鍵，然後按零，向會議專家發出訊號。

After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded.

今天的演講結束後，將有機會提問。請注意此事件正在被記錄。

I would now like to turn the conference over to Chris Newen, Vice President, Investor Relations. Please go ahead.

我現在想將會議交給投資者關係副總裁克里斯紐恩 (Chris Newen)。請繼續。

Hi, everyone. Thanks for joining us with me. Today are our CEO George Curian and CFO Mike Barry. This call is being webcast live and will be available for replay on our website at Netapp dotcom.

大家好。感謝您加入我們。今天是我們的執行長喬治·庫里安和財務長麥克·巴里。本次電話會議正在進行網路直播，並將在我們的 Netapp dotcom 網站上重播。

During today's call, we will make forward-looking statements and projections with respect to our financial outlook and future prospects including without limitation, our guidance for the third quarter. In fiscal year 2025 our expectations regarding future revenue, profitability and shareholder returns and other growth initiatives and strategies.

在今天的電話會議中，我們將就我們的財務前景和未來前景做出前瞻性陳述和預測，包括但不限於我們對第三季的指導。 2025 財年，我們對未來收入、獲利能力和股東回報以及其他成長舉措和策略的預期。

These statements are subject to various risks and uncertainties which may cause our actual results to differ materially.

這些陳述受到各種風險和不確定性的影響，可能導致我們的實際結果出現重大差異。

For more information, please refer to the documents we file from time to time with the SEC and on our website including our most recent form 10-K and form 10-Q. We disclaim any obligation to update our forward-looking statements and projections during the call, all financial measures presented will be non-GAAP unless otherwise indicated reconciliations of GAAP to nongaap estimates are available on our website. I'll now turn the call over to George.

如需了解更多信息，請參閱我們不時向 SEC 以及我們網站上提交的文件，包括我們最新的 10-K 表格和 10-Q 表格。我們不承擔在電話會議期間更新我們的前瞻性陳述和預測的義務，提出的所有財務指標都將採用非公認會計準則，除非我們的網站上另有說明公認會計準則與非公認會計準則估計的調節表。我現在把電話轉給喬治。

Thanks Chris. Good afternoon, everyone. Thank you for joining us today. I am extremely pleased with our Q2 performance revenue growth was driven by a 19% year over year increase in all flash storage and strong performance in first party and marketplace cloud storage services. We achieved record Q2 operating margin and EPS ahead of our expectations. Our uniquely differentiated solutions in flash block cloud storage and A I direct markets which are bolstered by both secular and company specific TWS.

謝謝克里斯。大家下午好。感謝您今天加入我們。我對第二季業績營收成長感到非常滿意，這是由全快閃儲存年增 19% 以及第一方和市場雲端儲存服務的強勁表現所推動的。我們第二季的營業利潤率和每股盈餘超出了我們的預期，創下了歷史新高。我們在快閃記憶體塊雲端儲存和人工智慧直接市場方面擁有獨特的差異化解決方案，這些解決方案得到了世俗和公司特定 TWS 的支持。

We experienced solid growth across all these strategic focus areas, affirming the strength of our value proposition for both existing and new to Netapp customers. This positive momentum not only underscores our strong execution but also demonstrates our customers' confidence and commitment to our intelligent data infrastructure platform.

我們在所有這些策略重點領域都實現了穩健的成長，這證實了我們對 Netapp 現有客戶和新客戶的價值主張的優勢。這一積極勢頭不僅凸顯了我們強大的執行力，也表明了客戶對我們智慧數據基礎設施平台的信心和承諾。

We are delivering innovation at the fastest pace in our history. Setting the stage for our continued success and growth in Q2, we held our inside customer conference showcasing how we uniquely address the genuine and pressing challenges that customers face in navigating the complexities of hybrid multi cloud. It, I personally witnessed the enthusiasm among the many new to Netapp and returning attendees as they recognize how Netapp empowers them to overcome these hurdles by building intelligent data infrastructures.

我們正在以歷史上最快的速度提供創新。為我們在第二季度的持續成功和成長奠定基礎，我們舉行了內部客戶會議，展示了我們如何以獨特的方式解決客戶在應對混合多雲的複雜性時面臨的真正而緊迫的挑戰。會上，我親眼目睹了許多 Netapp 新手和老與會者的熱情，因為他們認識到 Netapp 如何透過建立智慧數據基礎設施幫助他們克服這些障礙。

Organizations are proactively investing in data driven strategies to drive competitive advantage. These businesses recognize the value of adopting a cohesive data strategy, leveraging data as a valuable enterprise wide asset to fuel actual problem solving to accomplish this. They require a cutting edge data architecture founded on netapp's intelligent data infrastructure platform with Netapp's expertise and state of the art solutions. Customers are confidently paving their way to become data driven leaders.

組織正在積極投資數據驅動策略，以提高競爭優勢。這些企業認識到採用一致的數據策略的價值，利用數據作為寶貴的企業範圍資產來推動實際問題的解決以實現這一目標。他們需要基於 Netapp 智慧資料基礎架構平台的尖端資料架構，以及 Netapp 的專業知識和最先進的解決方案。客戶正在自信地為成為數據驅動的領導者鋪平道路。

We again delivered robust year over year performance in our hybrid cloud segment revenue grew 6% and product revenue grew 9% driven by notable strength in all flash storage broad based success across the portfolio propelled our all flash array annualized revenue run rate to an all time high of $3.8 billion up 19% year over year, the fourth consecutive quarter of high 10s to low 20% annual growth, we continue to gain share in the all flash market. Far outpacing the growth rates of both the industry and all of our competition.

我們再次在混合雲領域實現了強勁的同比表現，營收成長了6%，產品收入成長了9%，這得益於全快閃儲存的顯著實力，整個產品組合取得了廣泛的成功，推動我們的全快閃陣列年化營收運行率創歷史新高高達 38 億美元，年成長 19%，連續第四個季度實現高 10 至低 20% 的年增長率，我們繼續擴大在全快閃市場的份額。遠遠超過產業和我們所有競爭對手的成長率。

Our leadership was further underscored with the recognition of Netapp as a leader in the 2024 Gartner magic quadrant for primary storage platform for the 12th consecutive year.

Netapp 連續 12 年被評為 2024 年 Gartner 主儲存平台魔力像限的領導者，進一步凸顯了我們的領導地位。

In the quarter, we delivered more innovation with new high end products in our as a block optimized all flash and fast hybrid flash array families building on the Q1 introduction of the updated A F FA family of high performance all flash arrays. We have already seen new as a deals close across multiple regions and industries reaching new customers and expanding our wallet share with new workloads. The pipeline is growing as our message of simple, powerful and affordable, resonates with partners and customers with these new systems and continued advancements to our software platform. Customers no longer need to make trade offs between operational simplicity, advanced capabilities and affordability in their storage.

本季度，我們在區塊優化的全快閃和快速混合快閃記憶體陣列系列中透過新的高階產品實現了更多創新，這些產品基於第一季推出的更新版 A F FA 系列高效能全快閃陣列。我們已經看到了新的情況，即跨多個地區和行業達成的交易吸引了新客戶，並透過新的工作負載擴大了我們的錢包份額。隨著我們的簡單、強大和實惠的理念透過這些新系統和我們軟體平台的不斷進步與合作夥伴和客戶產生共鳴，管道正在不斷增長。客戶不再需要在儲存的操作簡單性、高級功能和經濟性之間進行權衡。

Keystone, our storage as a service offering again delivered another strong quarter with revenue growing approximately 55% from Q2 a year ago, we added cloud insights into Keystone's single subscription model, enabling customers to gain an integrated view across their infrastructure from virtual machines to network to storage on premises. And in the cloud only, netapp can deliver a true hybrid cloud experience with flexibility and control in an agile ego model.

我們的儲存即服務產品Keystone 再次實現了另一個強勁的季度業績，營收比一年前第二季度增長了約55%，我們將雲端洞察添加到Keystone 的單一訂閱模式中，使客戶能夠從虛擬機到網路的整個基礎設施的整合視圖到場所儲存。僅在雲端中，netapp 才能以敏捷的自我模式提供具有靈活性和控制力的真正混合雲體驗。

Organizations are actively evaluating how to use their corporate data with A I. These discussions dominated insight where we unveiled our expansive vision for A I in the era of data and intelligence.

組織正在積極評估如何透過人工智慧使用企業數據。

Just as we bridge the GAAP between on premises and the leading public clouds empowering customers to utilize their data with any application anywhere. We are well positioned to bridge the divide between A I systems and enterprise data.

正如我們在本地和領先的公有雲之間架起 GAAP 橋樑一樣，使客戶能夠在任何地方的任何應用程式中利用其資料。我們有能力彌合人工智慧系統和企業數據之間的鴻溝。

We help customers bring A I to their data regardless of location or method through an approach that is intelligent dynamic and secure.

我們幫助客戶透過智慧、動態和安全的方法將人工智慧引入他們的數據，無論其位置或方法如何。

By eliminating data silos, we give customers a unified and structured view of their data assets.

透過消除資料孤島，我們為客戶提供了統一且結構化的資料資產視圖。

This empowers them to effortlessly explore understand, unify and prepare their data for A I applications. Customers can leverage their existing A I ecosystem tools directly on their data while also benefiting from netapp's A I features such as integrated data versioning, model, traceability and highly efficient retrieval for model training and infancy.

這使他們能夠毫不費力地探索、理解、統一和準備人工智慧應用程式的數據。客戶可以直接利用其現有的 AI 生態系統工具來處理其數據，同時還可以受益於 netapp 的 AI 功能，例如集成數據版本控制、模型、可追溯性以及模型訓練和初期的高效檢索。

Our comprehensive solution includes policy based classification governance and security measures that accompany data throughout the A I life cycle. This includes automated A I data change detection and updates to keep data up to date and precise in every context.

我們的全面解決方案包括基於策略的分類治理和在整個人工智慧生命週期中伴隨資料的安全措施。這包括自動人工智慧資料變更偵測和更新，以保持資料在每個環境中都是最新且準確的。

While we believe the large opportunity of enterprise A I is still ahead of us. We are already seeing accelerating momentum today. Our A I business performed ahead of our expectations in Q2 with well over 100 A I and data lake modernization wins. These wins span geographies and industries with notable early momentum in public sector, manufacturing, financial services, health care and life sciences industries.

但我們相信企業A I的巨大機會仍在前方。今天我們已經看到了加速的動力。我們的 AI 業務在第二季度的表現超出了我們的預期，在 AI 和資料湖現代化方面取得了超過 100 項勝利。這些勝利跨越地域和行業，在公共部門、製造業、金融服務、醫療保健和生命科學行業中具有顯著的早期勢頭。

We continue to advance our strong position with the development of Gen A I cloud and on premises solutions in partnership with industry leaders, Gen A I is a truly hybrid workload and only Netapp has the breadth of products and services to reduce the complexity, resources and risks across increasingly complex hybrid multi cloud environments.

我們與產業領導者合作開發Gen A I 雲端和本地解決方案，繼續鞏固我們的強勢地位。風險。

In Q2, we announced several updates within our A I partner ecosystem. Deepening our partnership with Domino data labs, harnessing NVIDIA accelerated computing and A I software platforms and releasing the netapp A I pod with Lenovos solution in its general availability version to make A I ready infrastructure, readily available to public sector and other highly regulated industries.

在第二季度，我們宣布了 AI 合作夥伴生態系統的多項更新。深化我們與Domino 資料實驗室的合作關係，利用NVIDIA 加速運算和AI 軟體平台，並發布具有聯想解決方案的netapp AI pod 的通用版本，使AI 基礎設施做好準備，方便公共部門和其他高度監管的行業使用。

We expanded our partnership with Google cloud to provide the foundational data storage for the Google distributed cloud by enhancing Google distributed cloud environments with ontap unified file and block storage and storage. Great object storage solutions, customers can achieve better control over their data to efficiently scale their workloads and leverage A I while helping to maintain security and regulatory compliance. This collaboration has resulted in a number of early wins. Further accelerating our success in global public sector and other regulated industries.

我們擴大了與Google雲端的合作夥伴關係，透過ontap統一文件和區塊儲存和儲存增強谷歌分散式雲端環境，為Google分散式雲端提供基礎資料儲存。出色的物件儲存解決方案使客戶可以更好地控制數據，從而有效地擴展工作負載並利用人工智慧，同時幫助維護安全性和法規遵循。這種合作已經帶來了許多早期的勝利。進一步加速我們在全球公共部門和其他受監管行業的成功。

Now turning to public cloud, our highly differentiated first party and marketplace cloud storage services with the leading hyperscalers remain our focus and top priority. These services continue to grow rapidly increasing roughly 43% year over year in total public cloud segment revenue grew 9% year over year to $168 million.

現在轉向公有雲，我們與領先的超大規模供應商高度差異化的第一方和市場雲端儲存服務仍然是我們的重點和首要任務。這些服務持續快速成長，年增約 43%，公有雲部門總收入年增 9%，達到 1.68 億美元。

We continue to innovate rapidly in cloud storage services, broadening workload support capabilities, price and performance points. Further solidifying our strong leadership position in Q2, we updated cloud volumes on tap to include our advanced autonomous ransomware protection and write once read many capabilities, strengthening our customers' abilities to defend against ransomware attacks. Additionally, we enhanced Google cloud Netapp volumes which is now generally available in ALL40 Google cloud regions with petabyte scale volumes and auto tiering. Further expanding the number of workloads we serve, we remain focused on disciplined execution to meet the evolving needs of our growing customer base. We have broadened our all flash storage portfolio substantially with updated high performance flash capacity, flash and block optimized products. We have significantly increased our range of capabilities in public cloud storage with vastly more cloud data centers, more price and capacity points, new features and expanded workload support. We have integrated more intelligence services to make our storage the most secure with simplicity built in with scale.

我們持續在雲端儲存服務方面快速創新，擴大工作負載支援能力、價格和效能點。為了進一步鞏固我們在第二季度的強大領導地位，我們更新了雲卷，包括我們先進的自主勒索軟體保護和一次讀取多次寫入功能，從而增強了客戶防禦勒索軟體攻擊的能力。此外，我們還增強了 Google 雲端 Netapp 卷，該卷現已在 ALL40 Google 雲端區域中普遍可用，具有 PB 級捲和自動分層功能。在進一步擴大我們服務的工作負載數量的同時，我們仍然專注於嚴格的執行，以滿足不斷增長的客戶群不斷變化的需求。我們透過更新的高效能快閃記憶體容量、快閃記憶體和區塊優化產品大幅拓寬了我們的全快閃儲存產品組合。我們透過更多的雲端資料中心、更多的價格和容量點、新功能和擴展的工作負載支持，顯著增強了公有雲儲存的功能範圍。我們整合了更多智慧服務，使我們的儲存變得最安全，並且具有規模化的簡單性。

And finally, we continue to make it easy for customers to consume our products and services, how they want wherever they want. Netapp is at the forefront of innovation empowering customers to build intelligent data infrastructures, broad based customer preference for our solutions and visionary approach for a data driven future has enabled us to outgrow the market and take share from competitors. Our solid track record of disciplined operational management continues to yield strong earnings growth. Our focus and momentum fuel my confidence in our ongoing ability to deliver outstanding results for customers and shareholders in closing. I want to thank the Netapp team for their dedication to our customers success. I'll now turn the call over to Mike.

最後，我們繼續讓客戶隨時隨地輕鬆地使用我們的產品和服務。 Netapp 處於創新前沿，幫助客戶建立智慧數據基礎設施，客戶對我們的解決方案的廣泛偏好以及對數據驅動未來的遠見卓識使我們能夠超越市場並從競爭對手手中奪取份額。我們紀律嚴明的營運管理的良好記錄繼續帶來強勁的獲利成長。我們的專注和動力增強了我對我們持續為客戶和股東提供出色業績的能力的信心。我要感謝 Netapp 團隊為客戶成功所做的奉獻。我現在將電話轉給麥克。

Thank you George and good afternoon everyone. We executed a strong quarter hitting or exceeding all our guidance ranges. We made progress toward our long term investor day targets of mid to upper single digit revenue growth and double digit EPS growth on average through fiscal year '27. Fiscal year, 25 is expected to be within both ranges before I get into the financial details. Let me walk you through the key themes for the quarter. As a reminder, all numbers discussed are non-GAAP unless otherwise noted as expected. Q2 consolidated gross margin was strong at 72% continuing to trend near all time. Highs gross margin leverage and operating discipline drove operating margin of 29%.

謝謝喬治，大家下午好。我們的季度表現強勁，達到或超過了我們的所有指導範圍。我們在實現長期投資者日目標方面取得了進展，即截至 27 財年平均收入增長為中上個位數，每股收益平均增長為兩位數。在我了解財務細節之前，預計 25 財年將在這兩個範圍內。讓我向您介紹本季的關鍵主題。提醒一下，除非另有說明，否則所有討論的數字均非公認會計原則。第二季綜合毛利率強勁，達到 72%，持續維持接近歷史最高水準。高毛利率槓桿和營運紀律推動營運利潤率達到 29%。

Gross profit dollars grew 6% year over year in line with revenue. While operating profit dollars grew 13% year over year double the rate of revenue.

毛利與營收年增 6%。營業利潤年增 13%，是收入成長率的兩倍。

Q2 revenue grew 6% year over year, the fourth consecutive quarter of mid to high single digit year over year growth with product revenue, cloud and professional services. All growing above this rate in the quarter, we returned over $400 million to shareholders through dividends and share repurchases reducing Q2 fiscal '25 share count by 1 million shares year over year. As discussed during the last quarter's call, we intend to return up to 100% of free cash flow this year due to solid execution and strong operational management. We outperformed our expectations in the second quarter and expect our continued focus and discipline to deliver mid single digit year over year revenue growth in the second half of the fiscal year. As a result, we are raising our fiscal year '25 revenue and EPS expectations.

第二季營收年增 6%，連續第四個季度實現中高個位數年增，產品收入、雲端和專業服務收入均實現成長。本季所有成長均高於此速度，我們透過股息和股票回購向股東返還了超過 4 億美元，使 25 財年第二季的股票數量比去年同期減少了 100 萬股。正如上季電話會議中所討論的，由於紮實的執行力和強大的營運管理，我們打算今年返還高達 100% 的自由現金流。我們第二季的表現超出了我們的預期，並預計我們將繼續專注和自律，在本財年下半年實現中個位數的年收入成長。因此，我們提高了 25 財年的營收和每股盈餘預期。

Now to the details of the quarter revenue of $1.66 billion increased 6% year over year. Towards the high end of our guidance range, billings of $1.59 billion increased 9% year over year. This marks our fourth consecutive quarter of year over year revenue and billings growth product revenue of $768 million was up 9% year. Over year support revenue of $635 million grew 2% year. Over year professional services revenue of $87 million grew 10% year over year, mainly driven by Keystone public cloud revenue of $168 million increased 9% from Q2 a year ago, driven by hyperscale or first party and marketplace storage services.

現在詳細了解該季度營收 16.6 億美元，年增 6%。接近我們指引範圍的上限，帳單金額為 15.9 億美元，年增 9%。這標誌著我們的營收和帳單連續第四個季度同比增長，產品收入達到 7.68 億美元，年增 9%。支持收入為 6.35 億美元，年增 2%。專業服務收入為 8,700 萬美元，年增 10%，這主要是受超大規模或第一方和市場儲存服務推動的 Keystone 公有雲收入 1.68 億美元，較去年第二季增長 9% 所推動。

We expect cloud revenues to return to double digit year over year growth beginning in Q3, driven by the momentum in our cloud storage business. Q2 deferred revenue was $4.1 billion up 2% year over year. Keystone our storage as a service offering continues to gain traction in the market remaining performance obligations were $4.4 billion unbilled RPO was approximately $330 million up 11% quarter over quarter growth in unbilled RPO is a key indicator of future. Keystone growth.

我們預計，在雲端儲存業務成長動能的推動下，雲端收入將從第三季開始恢復兩位數的年成長。第二季遞延營收為 41 億美元，年增 2%。 Keystone 我們的儲存即服務產品繼續在市場上獲得關注，剩餘履約義務為 44 億美元，未開票 RPO 約為 3.3 億美元，季度環比增長 11%，未開票 RPO 的增長是未來的關鍵指標。基石成長。

Q2 consolidated gross margin came in at 72%. Product gross margin was 60%.

第二季綜合毛利率為 72%。產品毛利率為60%。

We highlight that both consolidated and product gross profit dollars grew mid to high single digits year over year in Q2. In line with revenue, we have made strategic purchase commitments to lock in the majority of SSD supply and mitigate rising prices in calendar year 2024 which continues to give us confidence in our product gross margins as we move into the second half of fiscal year '25 we continue to forecast product gross margins to decline slightly in the second half of fiscal year '25 as compared to the first half but remain in the high 50% range for the full year. Consistent with our prior guidance, our recurring support business continues to be highly profitable with gross margins of 92%.

我們強調，第二季綜合毛利潤和產品毛利潤年比均實現中高個位數成長。根據收入，我們做出了戰略採購承諾，以鎖定 2024 日曆年的大部分 SSD 供應並緩解價格上漲，這繼續讓我們在進入 25 財年下半年時對產品毛利率充滿信心我們繼續預測25 財年下半年的產品毛利率將較上半年略有下降，但全年仍將維持在50% 的高點。與我們先前的指引一致，我們的經常性支援業務持續保持高利潤，毛利率高達 92%。

Our support retention rates and associated margin structure represent the continuing innovation we deliver to our customers through on tap Q2.

我們的支援保留率和相關的利潤結構代表了我們在第二季度為客戶提供的持續創新。

Public cloud gross margins improved to 74% from 66% in the prior year.

公有雲毛利率從前一年的 66% 提高到 74%。

We are particularly proud of the improvement in public cloud gross margins and highlight that 4rd of the year over year expansion in total gross profit was driven by public cloud in the quarter.

我們對公有雲毛利率的改善感到特別自豪，並強調本季總毛利同比第四次成長是由公有雲推動的。

We expect to make further progress on our public cloud growth. Margins and exit fiscal year '25. At the lower end of our long term target of 75 to 80%.

我們期望在公有雲成長方面取得進一步進展。利潤率和退出財年'25。處於我們長期目標 75% 至 80% 的下限。

Operating expenses of $719 million was up 2% year over year and up 1% from Q125 Q2.

營運支出為 7.19 億美元，年增 2%，較 2012 年第二季成長 1%。

Again highlighted the strength of our business model and disciplined operational execution with operating margin of 29% ahead of expectations.

再次凸顯了我們業務模式的優勢和嚴格的營運執行力，營業利潤率達到 29%，超出預期。

EPS of a dollar and 87¢ was above the high end of our guidance driven by higher revenues and higher gross margins compared to our initial forecasts.

與我們最初的預測相比，由於收入和毛利率更高，每股收益為 1 美元和 87 美分，高於我們指導的上限。

Operating cash flow was $105 million in Q2 compared to $135 million a year ago and free cash flow was $60 million compared to $97 million a year ago.

第二季的營運現金流為 1.05 億美元，去年同期為 1.35 億美元，自由現金流為 6,000 萬美元，而去年同期為 9,700 萬美元。

Our lower year over year cash flow results in Q2 were primarily driven by upfront payments for strategic SSD purchases which are forecasted to be predominantly utilized during fiscal year '25.

我們第二季現金流量年減的主要原因是策略性 SSD 採購的預付款，預計這些預付款將主要在 25 財年使用。

These strategic purchases resulted in much higher inventory levels versus all of fiscal year '24 and reduced inventory turns to only six times in Q2 in the quarter. DSLS increased to 48 in line with seasonal averages during the quarter. We returned $406 million to stockholders through share repurchases and cash dividends. We have approximately $800 million remaining on our existing repurchase authorization.

這些策略採購導致庫存水準遠高於 2024 財年全年，並將本季第二季的庫存週轉率降至僅六倍。 DSLS 增加至 48，與本季的季節性平均值一致。我們透過股票回購和現金股利向股東返還 4.06 億美元。我們現有的回購授權還剩約 8 億美元。

We also repaid $400 million in debt with available cash in the quarter. As planned, our balance sheet remains healthy. We ended the quarter with approximately $2.2 billion in cash and short term investments against $2 billion in debt.

本季我們也用可用現金償還了 4 億美元的債務。按照計劃，我們的資產負債表保持健康。本季結束時，我們擁有約 22 億美元的現金和短期投資，而債務為 20 億美元。

Now, turning to guidance, starting with the full year, we are raising our revenue guidance for the full year to between 6.54 billion and $6.74 billion representing approximately 6% year over year growth at the midpoint.

現在，轉向指導，從全年開始，我們將全年收入指導提高至 65.4 億至 67.4 億美元之間，相當於中點同比增長約 6%。

We expect fiscal year 2025 consolidated gross margin to be 71 to 72% unchanged from prior expectations.

我們預計 2025 財年綜合毛利率將為 71% 至 72%，與先前的預期持平。

Importantly, we expect gross margin dollars to increase the $4.75 billion at the midpoint driven by growth across product support and cloud revenue.

重要的是，在產品支援和雲端收入成長的推動下，我們預計毛利率將增加 47.5 億美元。

We expect fiscal year '25 operating margin to be 28 to 28.5% up 75 basis points at the midpoint compared to prior expectations. We are raising our net interest income expectations slightly to $55 million driven by higher interest income.

我們預期 25 財年營業利益率為 28% 至 28.5%，比先前預期的中位數高出 75 個基點。由於利息收入增加，我們將淨利息收入預期小幅上調至 5,500 萬美元。

We expect our tax rate for the full year to be 20 to 21% as a result. We expect EPS to be in the range of $7.20 to $7.40 which at the midpoint implies 13% growth year over year, year-to-date. Our free cash flow has trended lower year over year despite higher revenue and net income due to the timing of higher incentive compensation and our strategic SSD purchase commitments in the first half of the year which have been instrumental to our supply chain management strategy in a rising commodity cost environment.

因此，我們預計全年稅率為 20% 至 21%。我們預計每股收益將在 7.20 美元至 7.40 美元之間，這意味著年初至今同比增長 13%。儘管收入和淨利潤較高，但我們的自由現金流仍逐年下降，這是由於上半年更高的激勵薪酬和我們的策略性 SSD 採購承諾，這對我們的供應鏈管理策略發揮了重要作用。商品成本環境。

The lower cash flow results are due to the timing of cash payments not a change in our normalized cash conversion cycle.

現金流量結果較低是因為現金支付的時間，而不是我們正常現金轉換週期的變動。

We expect SSD related cash outflows to slow in the rest of our fiscal year and expect cash flow generation to be higher in the second half of the year compared to the first half and grow year over year versus the second half of fiscal year '24.

我們預計 SSD 相關的現金流出在本財年剩餘時間內將放緩，預計下半年現金流量將高於上半年，並且與 24 財年下半年相比將逐年增長。

Even with this improvement, we now expect free cash flow in fiscal year '25 to be slightly lower year over year driven by the timing of these cash payments.

即使有了這樣的改善，我們現在預計，由於這些現金支付的時間安排，25 財年的自由現金流將比去年同期略有下降。

Turning now to our third quarter guidance, we expect Q3 revenue to range between 1.61 billion and $1.76 billion which at the midpoint implies 5% growth year over year. We expect Q3 consolidated gross margin to be 71 to 72% and operating margin to be approximately 29%.

現在轉向我們的第三季指引，我們預計第三季營收將在 16.1 億美元至 17.6 億美元之間，這意味著年增 5%。我們預期第三季綜合毛利率為 71% 至 72%，營業利益率約 29%。

We expect net interest income to be $10 million in the quarter and our tax rate to be 20 to 21%.

我們預計本季淨利息收入為 1,000 萬美元，稅率為 20% 至 21%。

EPS is expected to be in the range of a dollar 85 to a dollar 95.

EPS 預計在 85 美元至 95 美元之間。

While our Q3 guidance for EPS forecast a year over year decline. We note that last year's Q3 represented a record high in product gross margin as well as an unusually low tax rate normalizing for these factors. Our Q3 PS guidance forecast year over year PS role as a reminder, we expect double digit EPS growth on average from fiscal year '25 to fiscal year '27. And our fiscal year '25 guidance is on track towards this goal in closing. I want to thank our employees, customers and investors for their commitment and investment in net out.

雖然我們對第三季每股收益的指導預測將比去年同期下降。我們注意到，去年第三季的產品毛利率創歷史新高，這些因素正常化後的稅率異常低。我們的第三季 PS 指導預測將年比 PS 角色提醒我們，我們預計從 25 財年到 27 財年 EPS 平均成長兩位數。我們的 25 財年指導最終有望實現這一目標。我要感謝我們的員工、客戶和投資者對 net out 的承諾和投資。

I am confident in our ability to help our customers successfully achieve their digital and cloud transformation goals.

我對我們幫助客戶成功實現數位和雲端轉型目標的能力充滿信心。

We are well aligned to priority it investments and are committed to deliver sustainable long term value for our stockholders.

我們與優先 IT 投資保持一致，並致力於為股東提供可持續的長期價值。

I'll now turn the call over to Chris to open the Q&A Chris.

我現在將把電話轉給克里斯，以開始問答克里斯。

Thanks Mike operator. Let's begin the Q&A.

謝謝邁克接線生。讓我們開始問答。

(Operator Instructions)

（操作員說明）

And our first question today will come from Asia Merchant with Citigroup. Please go ahead.

今天我們的第一個問題將來自花旗集團的亞洲商人。請繼續。

Great. Thank you. For taking my question and congratulations on strong results. If I may. George and Mike, you've talked about, you know, Macro in the past, and some kind of uneven recovery across certain verticals. So maybe if you could just start with that and relative to this, you know, 5% revenue growth for the full year, how much of that is, you know, predicated on Macro versus, you know, now that you have a fuller portfolio that is addressing, you know, all the external storage needs. Thank you.

偉大的。謝謝。感謝您回答我的問題並祝賀您取得了優異的成績。如果可以的話。喬治和麥克，你們過去談到宏觀經濟，以及某些垂直領域的某種不均勻復甦。因此，也許你可以以此為起點，相對於此，你知道，全年收入增長 5%，其中有多少是基於宏觀預測，而你知道，現在你擁有更完整的投資組合您知道，這正在解決所有外部儲存需求。謝謝。

The macro in the last past quarter has been unchanged. Relative to prior quarters, we are well aligned to the priority spending areas for our customers, data center, modernization, the deployment of new applications, cyber resilience for data and of course cloud and A I and our product portfolio is exceptionally strong. We are focused and executing at the expense of, you know, larger competitors. And I think that our growth outlook for the year is regardless of the macro, we are assuming that it stays where it is.

上個季度的宏觀政策沒有改變。與前幾季相比，我們與客戶的優先支出領域、資料中心、現代化、新應用程式的部署、資料的網路彈性，當然還有雲端和人工智慧以及我們的產品組合非常強大。我們的專注和執行是以犧牲更大的競爭對手為代價的。我認為我們今年的成長前景與宏觀因素無關，我們假設它保持不變。

Great. And if I may on the A I side of things, I know you've talked about in the past that it is, this is still ahead of us. Any updates you can give you know how you're seeing various enterprises deploying, you know, NETAPP solutions as it relates to modernizing your data storage for A I and any insights you can give us to sort of when you think A I inferencing will be a bigger factor for you guys. Thank you.

偉大的。如果我可以從事情的A-I方面來說，我知道你過去已經談過，這仍然是我們的前面。您可以提供的任何更新都可以讓您了解如何看到各種企業部署NETAPP 解決方案，因為它與AI 資料儲存的現代化有關，以及當您認為AI 推理將變得更大時您可以向我們提供的任何見解你們的因素。謝謝。

We are seeing the early stages of getting your data infrastructure ready for A I. We had a large number of wins across the multiple verticals. As I said in my prepared remarks, those are leading indicators of future large scale inferencing deployments. I would say they are today in what we call A I centers of excellence and they have not yet hit large scale. We also have had some strong momentum with Google with their distributed cloud for A I deployments in the public sector. And so we're encouraged at the at the prospects our A I business going forward in large. You know, I don't have an update from prior commentary. We think that it's still, you know, second half of next year and so the growth opportunity for us is still ahead of us.

我們看到資料基礎設施為 AI 做好準備的早期階段。正如我在準備好的發言中所說，這些是未來大規模推理部署的領先指標。我想說的是，它們現在位於我們所說的人工智慧卓越中心，但尚未達到大規模。我們也與Google合作，利用他們的分散式雲端在公共部門部署人工智慧，取得了強勁的勢頭。因此，我們對人工智慧業務的大規模發展前景感到鼓舞。你知道，我沒有之前評論的更新。我們認為現在仍然是明年下半年，因此我們的成長機會仍然在前方。

Great. Thank you and congratulations.

偉大的。謝謝你並恭喜你。

Thank you.

謝謝。

Your next question today will come from Amit Daryanani with evercore. Please go ahead.

今天您的下一個問題將由 Evercore 的 Amit Daryanani 提出。請繼續。

Yes. Good afternoon everyone. You know, I guess just to start with George, am I can you just talk about the strength and really the durability of what you see on the all flash array side? You know, you folks have had near 20% growth for a few quarters. Now, how do you think of that all flash array growth as you go into the back half of the fiscal year where compares that things start to get a little bit more difficult for you. I'd love to kind of just understand that. And then if I just speak to the all flash R A team, I'd love to just understand the growth you're seeing right now. How much of that do you think is share gains versus maybe new products like the A series that's opening up, you know, newer workloads, new environments for you.

是的。大家下午好。您知道，我想先從 George 開始，您能談談您在全快閃陣列方面看到的強度和真正的耐用性嗎？你知道，你們幾季的成長率接近 20%。現在，當您進入本財年後半段時，您如何看待全快閃陣列的成長，相較之下，事情開始變得更加困難。我很想理解這一點。如果我只是與全快閃 R A 團隊交談，我很想了解你們現在所看到的成長。你認為其中有多少是份額收益，而不是像 A 系列這樣的新產品，你知道，為你開放了新的工作負載、新的環境。

We have had four consecutive quarters of high 10s or 20% plus revenue growth in all flash arrays. This is clearly outpacing the market and all of the competitors. It is because we are aligned to areas of customer spending as well as a unique value proposition, a single operating system, an advanced and complete hybrid multi cloud capability, the richest set of data services, the most secure storage in the planet and you can buy and consume this technology in the way you want from Netapp or from our partners. We are combining that durable competitive mode with the fastest innovation pipeline ever. We refreshed the A series, we refreshed the as a products, we refreshed our fas products and you will see continued innovation coming from us over the next few quarters and we are focused on executing in the go to market as opposed to many of our competitors who are distracted. So I feel very, very good about the durability of our leadership position and the opportunity going forward.

我們的全快閃陣列收入連續四個季度實現 10% 以上或 20% 以上的成長。這顯然超過了市場和所有競爭對手。這是因為我們與客戶支出領域保持一致，並且具有獨特的價值主張、單一操作系統、先進且完整的混合多雲功能、最豐富的數據服務集、全球最安全的存儲，您可以按照您想要的方式從Netapp 或我們的合作夥伴處購買和使用該技術。我們將這種持久的競爭模式與有史以來最快的創新管道結合。我們更新了 A 系列，我們更新了作為產品，我們更新了 fas 產品，您將在接下來的幾個季度看到我們的持續創新，與我們的許多競爭對手相比，我們專注於進入市場的執行誰分心了。因此，我對我們領導地位的持久性和未來的機會感到非常非常滿意。

Got it. And then Mike, could you just touch on this pre buying of memory that you folks are doing right now? I guess do I think of the sequential uptick in inventory is essentially all pre buys? And then can you talk about, does this, is it, are you changing the way you look at inventory pre buying longer term? And is it something you think you're going to do on a more consistent basis? Thank you.

知道了。然後，麥克，你能談談你們現在正在做的記憶體預購買嗎？我想我是否認為庫存的連續上升基本上都是預購？然後您能否談談，您是否正在改變您對長期購買前庫存的看法？您認為您會更一致地這樣做嗎？謝謝。

Sure. Thanks. For the question ed. So yes, the increase in the first half in inventories while it's not certainly the whole amount of the inventory number, the 300 plus million, the majority of the increase is, are the pre buys that we've negotiated at the end of 24 and 25. So at this point, we've said it before, we're not looking to do any more pre buys going forward. We're good where we are. We've covered majority of our expected demand in fiscal '25. So at this point, ahmed, we, you know, we've taken a step back. We're starting to see some softening in the NND market. So we're going to let that play out. So we'll, hey, we look at it every day, we'll look at it as we go through the rest of fiscal '25. But unless something changes in the market, you shouldn't expect to see us do any more pre buys for the rest of this fiscal year.

當然。謝謝。對於問題編輯。所以，是的，上半年庫存增加，雖然不一定是庫存數量的全部，300多萬，增加的大部分是我們在24年底商定的預購， 25. 因此，在這一點上，我們之前已經說過，我們不打算在未來進行任何更多的預購。我們現在的處境很好。我們已經滿足了 25 財年的大部分預期需求。所以在這一點上，艾哈邁德，我們，你知道，我們已經退後了一步。我們開始看到 NND 市場出現一些疲軟。所以我們要讓它發揮作用。所以我們會，嘿，我們每天都會關注它，我們會在 25 財年剩下的時間裡關注它。但除非市場發生變化，否則您不應期望看到我們在本財年剩餘時間內進行更多預購。

Perfect. Thank you very much.

完美的。非常感謝。

Thank you.

謝謝。

And your next question today will come from Tim Long of Barclays. Please go ahead.

今天你們的下一個問題將來自巴克萊銀行的提姆朗。請繼續。

Thank you. Too as well. If I could, first Mike, you mentioned the, the RPO down sequentially, I know there's some unbilled in there, but everything else sounded pretty strong with the, the billings and the outlook and, and the pipeline. So if you could just walk us through, you know, the RPO down in the quarter. And then secondly, I was hoping you could touch on, on the public sector pretty strong results. Q on Q and year over year. Just curious, what drove that and what's the outlook for that business given the changing political landscape for, for that, that type of business? Thank you.

謝謝。也同樣如此。如果可以的話，首先邁克，你提到了 RPO 連續下降，我知道其中有一些未開票的內容，但其他一切聽起來都相當強勁，包括賬單、前景和管道。因此，如果您能向我們介紹一下，您知道，本季的恢復點目標 (RPO) 有所下降。其次，我希望你能談談公共部門相當強大的成果。 Q 上的 Q 和年復一年。只是好奇，是什麼推動了這一點？謝謝。

Yeah, thanks for the question, Tim. So it's Mike, I'll do the first one. So thanks on RPO. So a couple things, rpo is made up of two pieces. It's made up of deferred revenue, which is both short and long term on the balance sheet and then the unbilled portion of our commitments. That's where you will find keystone because it's not on the balance sheet. RPO came down quarter on quarter as expected because sequentially deferred revenue always comes down Q1 to Q2. Now, importantly, in the number we look at is total deferred revenue including short term grew year over year. It was flat in Q1 after being down slightly in the second half of last year. So that's a great sign for us to your point that really follows the great billings growth that we've had so on. Our po just, hey, always watch. What's the unbilled versus deferred? Deferred follows a sequential pattern. We do expect to see unbilled continue to grow quarter on quarter though largely driven by Keystone. And I'll hand it to George for the public sector question.

是的，謝謝你的提問，提姆。是麥克，我來做第一個。感謝 RPO。因此，rpo 由兩部分組成。它由資產負債表上的短期和長期遞延收入以及我們承諾的未開票部分組成。這就是您可以找到梯形石的地方，因為它不在資產負債表上。 RPO 按預期逐季下降，因為連續遞延收入總是從第一季到第二季下降。現在，重要的是，我們看到的數字是遞延收入總額，包括短期年成長。去年下半年略有下降後，第一季持平。因此，就您的觀點而言，這對我們來說是一個很好的跡象，它確實遵循了我們所經歷的比林斯的巨大增長。我們的寶只是，嘿，一直看著。未開票與延期的差別是什麼？延遲遵循順序模式。我們確實預計未開票業務將繼續季度環比增長，儘管這主要是由 Keystone 推動的。我將把公共部門問題交給喬治。

Our us public sector business performed well despite the continuing resolution, as we said in the past, a large part of our public sector business is from a number of long term projects which are supported by program spending that is approved across annual budget cycles. We also saw strong performance across the globe from our public sector segment with regard to our expectations for the new administration, new administration brings new priorities. We will wait to see how they play out. One encouraging sign is that there is alignment across legislature and executive, which hopefully means that policies can be implemented quickly.

儘管不斷有決議，我們的美國公共部門業務仍表現良好，正如我們過去所說，我們公共部門業務的很大一部分來自許多長期項目，這些項目得到了跨年度預算週期批准的計劃支出的支持。我們也看到我們的公共部門在全球範圍內表現強勁，這符合我們對新政府的期望，新政府帶來了新的優先事項。我們將拭目以待，看看他們的表現如何。一個令人鼓舞的跡像是立法機構和行政部門之間存在協調一致，這有望意味著政策可以迅速實施。

Thank you.

謝謝。

And your next question today will come from Jason Ader with William Blair. Please go ahead.

今天你們的下一個問題將由賈森·阿德爾和威廉·布萊爾提出。請繼續。

Yeah, thanks. Good afternoon. Georgia.

是的，謝謝。午安.喬治亞州。

I wanted to ask you about any potential ripple effects that you guys are seeing from the broadcom VM ware acquisition specifically on storage projects just as customers maybe have less budget or you know, look to reevaluate their on prem infrastructure plans and strategies.

我想問一下你們從Broadcom VM ware 收購中看到的任何潛在的連鎖反應，特別是在存儲項目上，就像客戶可能預算較少，或者您知道，希望重新評估他們的本地基礎設施計劃和策略。

We have not seen anything material yet. We are seeing customers look at three packs forward. One is to optimize their existing Broadcom ate.

我們還沒有看到任何實質內容。我們看到顧客向前看三包。一是優化他們現有的Broadcom ate。

That could be by moving a footprint from hyper converged to external storage so that they don't pay the virtual machine tax on the storage layer. And it also gives them flexibility to move in other directions. Moving forward. The second is to move to new architectures. We have seen clients deploy alternative hypervisors and we benefit in, in those cases from our integration into multiple different hypervisors. And then there are a group of customers who have moved to the public cloud. We have strong solutions with VM Ware and with the Hyper SCRS and our public cloud bene business saw some benefit from that this quarter.

這可以透過將足跡從超融合轉移到外部儲存來實現，這樣他們就不用在儲存層上支付虛擬機器稅。它還使他們能夠靈活地向其他方向發展。繼續前進。第二是轉向新的架構。我們已經看到客戶部署了替代的虛擬機器管理程序，在這些情況下，我們可以從整合到多個不同的虛擬機器管理程序中受益。還有一群客戶已經遷移到公有雲。我們透過 VM Ware 和 Hyper SCRS 擁有強大的解決方案，我們的公有雲受益業務本季從中受益。

Okay. Thank you. And then Mike maybe for you just the Keystone product or the Keystone offering. Does that go in the professional services line? Is that what I heard you say?

好的。謝謝。然後，Mike 可能會向您介紹 Keystone 產品或 Keystone 產品。這屬於專業服務範圍嗎？我聽到你是這麼說的嗎？

Yes. Hey Jason, it's like, yes, that is reported in professional services. That's where the revenue goes because it is a service. So it's not in product or support, it's in professional services.

是的。嘿，傑森，這就像，是的，這是專業服務中報導的。這就是收入的來源，因為它是一項服務。因此，這不是產品或支持，而是專業服務。

Okay. And would we, as we look forward in the model? I mean, should we see professional services growth inflect because Keystone becomes a you know, bigger part of that mix over the next couple of years.

好的。正如我們在模型中所期望的那樣，我們會嗎？我的意思是，我們是否應該看到專業服務的成長發生變化，因為 Keystone 在未來幾年將成為該組合中更重要的一部分。

So you did see it grow quarter on quarter and that was largely due to, to Keystone Professional services is a relatively stable piece of business. So as you see that revenue move up and we have forecasted continued growth, the majority of that is due to Keystone Jason.

所以你確實看到它逐季成長，這很大程度上是因為 Keystone 專業服務是一項相對穩定的業務。因此，正如您所看到的收入成長，並且我們預測持續成長，其中大部分歸功於 Keystone Jason。

Okay, thank you guys. Good luck.

好的，謝謝你們。祝你好運。

Thank you.

謝謝。

And your next question today will come from Simon Leopold with Raymond James. Please go ahead.

今天你們的下一個問題將由西蒙·利奧波德和雷蒙德·詹姆斯提出。請繼續。

Thanks for taking the question first. I I know you you stopped disclosing the split of, of hardware from software within hybrid cloud. But I'm wondering if there's anything in particular going on in terms of the mix between your software and hardware business that might be affecting product growth margins, either in the recent quarter or in the outlook. And then as a quick follow up, I'm just wondering if there are any specific characteristics of the customers you see experimenting with A I applications in the enterprise. For example, do you see it biased towards something like financial services or certain kinds of industries, any patterns that are observed you're observing? Thank you.

感謝您先提出問題。我知道你停止披露混合雲中硬體與軟體的分離。但我想知道在您的軟體和硬體業務之間的組合方面是否有任何特別的事情可能會影響最近季度或前景的產品成長利潤。然後，作為快速跟進，我只是想知道您看到的在企業中嘗試人工智慧應用程式的客戶是否有任何特定特徵。例如，您是否認為它偏向於金融服務或某些類型的行業，您觀察到的任何模式？謝謝。

So, Simon, it's Mike. I'll take the first one. Yes, we, we don't disclose the hardware and software breakout anymore. We talked about that in terms of why we pulled back on that as it relates to gross margin. What I'd focus you on is the mix of flash versus the rest of the business. That's really the big driver there as we've talked about it that, you know, A series high performance flash has always been the highest gross margin percentage and then capacity flash and then the non flash product. So as we continue to sell more flash, and part of that is the replacement of our, of our hybrid install base. And we're doing that on purpose. That is what we expect to continue to keep our product gross margins where they are. It's more of a mix issue, hardware and software is really not playing into that.

所以，西蒙，是麥克。我就拿第一個。是的，我們，我們不再透露硬體和軟體突破。我們討論了為什麼我們要取消這一點，因為它與毛利率有關。我想讓您重點關注的是閃存與其他業務的結合。這確實是一個很大的驅動因素，正如我們所討論的，A 系列高性能閃存一直是毛利率最高的，然後是容量閃存，然後是非閃存產品。因此，隨著我們繼續銷售更多閃存，其中一部分是更換我們的混合安裝基礎。我們是故意這樣做的。這就是我們期望繼續維持產品毛利率不變的原因。這更多的是一個混合問題，硬體和軟體實際上並沒有發揮作用。

With regard to your question on A I, we had a large number of wins across all of our geographies and industries. I think if you were to draw a trend line, maybe there's more presence in public sector, manufacturing, financial services and health care and life science. Pretty broad based book of Business. Those industries had more of the wins.

關於你關於人工智慧的問題，我們在所有地區和產業都取得了大量的勝利。我認為，如果你要畫一條趨勢線，也許公共部門、製造業、金融服務以及醫療保健和生命科學領域會有更多的存在。基礎相當廣泛的商業書籍。這些行業獲得了更多的勝利。

I and your next question today will come from Samik Chatterjee with JP Morgan. Please go ahead.

我和你們今天的下一個問題將來自摩根大通的 Samik Chatterjee。請繼續。

Hi, thanks for the question. This is Joe Corso on for Sonic Chatter. Maybe just first question here. Can we just get an update on the competitive environment particularly with you seeing another quarter of a muted or challenging macro? Curious if this is just pro this prolonged macro is driving you to see an increasing intensity across your peer group. And then I just have a quick follow up.

你好，謝謝你的提問。我是《索尼克喋喋不休》的喬‧科索。也許只是這裡的第一個問題。我們能否了解競爭環境的最新情況，特別是在您看到宏觀經濟又一個季度陷入低迷或充滿挑戰的情況下？好奇這是否只是有利的，這種長期的宏觀經濟正在促使你看到你的同儕群體的強度不斷增加。然後我會快速跟進。

No fundamental change in the competition, the pricing environment, which is a representation of the competition remains rational. It's always been a competitive industry, I would say following the long term trend of the industry, the specialists are more advantaged than the integrated system vendors. And there are lots of share donors across the landscape. So we are well positioned to outperform. We have been outperforming for multiple quarters now and we see no change in that position. In fact, you know, I feel even better today than we felt in the past our product cycle. Our ability to meet customer demand and customer trends as well as our unique competitive mode that we have built over many years is playing through for us.

競爭、定價環境沒有根本性的變化，這是競爭依然理性的表現。這一直是一個競爭激烈的行業，我想說，按照行業的長期趨勢，專家比整合系統供應商更有優勢。整個行業有很多股票捐贈者。因此，我們處於領先地位。現在我們已經連續多個季度表現出色，而且我們認為這一狀況沒有變化。事實上，你知道，我今天的感覺比過去的產品週期還要好。我們滿足客戶需求和客戶趨勢的能力以及我們多年來建立的獨特的競爭模式正在為我們發揮作用。

Thanks George and maybe just a follow up on the new US administration coming in. I know you touched on real quickly but like specifically, how are you thinking about any implications around any potential tariff, government efficiency, initiative taxes, etcetera that the new administration has talked about thus far? You know, where are you seeing headwinds? Where are you seeing tail end, any potential area that we should be flat, investors should be wary of or your guys are too early to tell essentially. Thanks, appreciate any color on that side.

謝謝喬治，也許只是美國新政府上任的後續行動。到了嗎？你知道，你在哪裡看到逆風嗎？你在哪裡看到尾部，我們應該持平的任何潛在領域，投資者應該警惕，或者你的人現在判斷還為時過早。謝謝，欣賞那一面的任何顏色。

We are well protected from any tariffs being considered on China. Our supply chain and book of business has been vastly protected from that. So we don't see any material impact to our business from that if that were to occur. I think on the rest of the, you know, policies we are going to wait till January and once the new administration is sworn in, we can see how that plays out. We'll update you once we have clarity on it.

我們受到很好的保護，不會受到任何針對中國的關稅的影響。我們的供應鏈和業務範圍受到了極大的保護。因此，如果這種情況發生，我們認為這不會對我們的業務產生任何重大影響。我認為，對於其餘的政策，我們將等到一月份，一旦新政府宣誓就職，我們就可以看到結果如何。一旦我們弄清楚了，我們就會向您通報最新情況。

No, got it. Thanks George. I appreciate all the color.

不，明白了。謝謝喬治。我欣賞所有的顏色。

Thank you.

謝謝。

And your next question today will come from Param Singh with Oppenheimer. Please go ahead.

今天你們的下一個問題將由帕拉姆辛格和奧本海默提出。請繼續。

Great. Thank you for taking my question. First of all, you know, good to see that your public cloud revenue is starting to improve again. I wanted to get a sense of what are some of the changes that you recently implemented that's driving a recovery in that growth? And then when do you think we can get to you know, a team's growth back again in that public cloud revenue segment? And then I have a follow up.

偉大的。感謝您回答我的問題。首先，很高興看到您的公有雲收入再次開始改善。我想了解你們最近實施的一些改變推動了成長的復甦？那麼您認為我們什麼時候可以讓您知道團隊在公有雲收入領域再次成長？然後我有一個後續行動。

I think we've done three things. You know, in the business, as we have said, multiple times, the first was to build a focused go to market engine together with the Hyper Scalers. The second was to broaden our offerings in the first party and hyper scalar marketplace with cloud storage. And the third was to restructure or, you know, push for stabilizing in the subscription business. All of those have made good progress. I think in the past quarter, you've seen the continued strength a really strong quarter, 43% year on year from the Hyperscaler and first party cloud storage services, which are an ever increasing part of our business. And as Mike said, you know, we expect to return to double digit growth in the second half of the fiscal year that is coupled with strong gross margin performance. As you can tell, you know, the increased scaling of the business plus better utilization and less headwinds from depreciation and amortization has caused us to track upward in terms of gross margin. And we expect to hit our long term gross margin targets by the end of the fiscal year '25.

我認為我們做了三件事。您知道，在業務中，正如我們多次所說的，首先是與 Hyper Scalers 一起建立一個專注於市場的引擎。第二個是透過雲端儲存擴大我們在第一方和超規模市場的產品範圍。第三個是重組，或者，你知道，推動訂閱業務的穩定。所有這些都取得了良好的進展。我認為在過去的一個季度中，您已經看到了超大規模和第一方雲端儲存服務的持續成長，這是一個非常強勁的季度，同比增長 43%，這是我們業務中不斷增長的一部分。正如麥克所說，您知道，我們預計本財年下半年將恢復兩位數成長，同時毛利率表現強勁。如您所知，業務規模的擴大、利用率的提高以及折舊和攤銷帶來的阻力減少，使我們的毛利率不斷上升。我們預計到 25 財年末將達到長期毛利率目標。

And just to add to that, hey, we should, you can all run your own guidance. Sorry, you can all run your own guidance models. We talked about double digit growth starting in Q3. So if you run that growth out, I'm going to be surprised if you don't hit the 10s in fiscal '25.

除此之外，嘿，我們應該，你們都可以運行自己的指導。抱歉，你們都可以運行自己的指導模型。我們討論了從第三季開始的兩位數成長。因此，如果你把這種成長速度用完，如果你在 25 財年沒有達到 10 多歲，我會感到驚訝。

Got it. Perfect. Thanks so much for the color George and Mike. And then as my follow up, I want to focus a little bit on Keystone. You talked about a 3 30 million unbilled RPO and then zooming a typical, you know, duration of about three ish years. You, you're still pretty small on the keystone side. What are you hearing in terms of feedback from customers? And when do you think Keystone can start to become a much more meaningful part of the overall net story?

知道了。完美的。非常感謝喬治和麥克的顏色。然後，作為我的後續行動，我想稍微關註一下 Keystone。您談到了 3.3 億未開票的 RPO，然後將典型的持續時間縮短了大約三年左右。你，在基石方面還很小。您從客戶的回饋中聽到了什麼？您認為 Keystone 什麼時候可以開始成為整個網路故事中更有意義的一部分？

It's the feedback from customers has been stellar. We have yet to see a single customer turn on Keystone. So it has been an incredibly rock solid, you know, product and service customers like the flexibility we have. We continue to educate our field teams broaden the number of partners who can sell and we are seeing them more partners transacting keystone. And so we'll see that growth over time, right? And I'm excited about it. It should grow faster in terms of percentage growth than our product business, but is an aid to us winning new customers and new workloads.

客戶的反饋非常好。我們還沒有看到任何客戶啟用 Keystone。因此，它的產品和服務非常堅如磐石，客戶喜歡我們的靈活性。我們繼續教育我們的現場團隊，擴大可以銷售的合作夥伴的數量，我們看到他們有更多的合作夥伴進行交易。隨著時間的推移，我們會看到這種增長，對嗎？我對此感到很興奮。它的成長百分比應該比我們的產品業務成長得更快，但有助於我們贏得新客戶和新工作負載。

Understood. I'll get back in line. Thank you so much for the color.

明白了。我會回去排隊。非常感謝你的顏色。

Thank you.

謝謝。

And your next question today will come from Wamsi Mohan with Bank of America. Please go ahead.

今天你們的下一個問題將由美國銀行的瓦姆西·莫漢 (Wamsi Mohan) 提出。請繼續。

Hi. Thanks for taking the questions. It's actually Ruplu Barar filling in for Wamsi today. I just wanted to follow up on the public cloud segment a question. So, Mike your first party Hyperscaler marketplace storage services, like you said, have accelerated 40% year on year growth last year, 43 last quarter, 43% this year. Can you comment on the subscription services part, the headwinds that you were seeing. I think you had said that it's lessening over the course of fiscal '25 any quantification on the headwinds. And how should we think about this going over the next couple of quarters into the next fiscal year?

你好。感謝您提出問題。今天實際上是魯普魯·巴拉爾 (Ruplu Barar) 接替瓦姆西 (Wamsi)。我只是想跟進公共雲領域的一個問題。因此，麥克，正如您所說，您的第一方超大規模市場儲存服務去年同比增長了 40%，上季度增長了 43%，今年增長了 43%。您能否評論一下訂閱服務部分以及您所看到的不利因素。我想你曾說過，在 25 財年期間，任何不利因素的量化都在減少。我們該如何看待接下來幾季到下一個財年的情況？

Sure. So let's let's back up and go through those numbers again. Just so we all have them So at Financial Analyst day, we, we talked to you folks about the size of that business, first party and marketplace services, a little less than half of the total cloud revenue. So a good portion of it that is grew last quarter by about 43% total cloud revenue grew by nine. We and we've talked about this on purpose. We are as with our customers seeing a conversion to first party and marketplace away from subscription. We've talked about the pull of marketplace, how important that is in terms of them being able to burn down their commits and then all the wonderful partnerships we have with the big three hyper scrs. So the subscription business that is about 20% of the revenue, it gets to be a smaller piece every day because of growth of first party and marketplace. So it is declining on purpose. That was part of the plan, you know, at some point, it probably flattens out, but we do expect over the next several quarters for consumption to continue to grow from the 80 plus percent. It is and it will be the very large majority of the business going forward. So we won't quantify the subscription piece. You can run your own numbers. But that is part of strategic plan to push to first party and marketplace. And by all rights, we've seen it's really working. The other thing I'll add and George brought this up, that's really helped from a margin perspective as well driving much better gross margins. So all of this feels like it's really setting us up well for the rest of 25 going into 26.

當然。讓我們回顧一下這些數字。所以我們都擁有它們 因此，在金融分析師日，我們與大家討論了該業務、第一方和市場服務的規模，略低於雲端總收入的一半。因此，其中很大一部分是上個季度成長了約 43%，雲端總收入成長了 9%。我們和我們已經特意討論過這個問題。就像我們的客戶一樣，我們看到從訂閱轉向第一方和市場。我們已經討論了市場的吸引力，這對於他們能夠燃燒自己的承諾以及我們與三大超級供應商之間的所有美好合作夥伴關係而言是多麼重要。因此，訂閱業務約佔收入的 20%，但由於第一方和市場的成長，它的份額每天都在縮小。所以它是故意下降的。這是計劃的一部分，你知道，在某個時候，它可能會趨於平緩，但我們確實預計未來幾個季度的消費將繼續從 80% 以上增長。確實如此，也將成為未來業務的絕大部分。所以我們不會量化訂閱部分。您可以運行自己的號碼。但這是推動第一方和市場策略計劃的一部分。毫無疑問，我們已經看到它確實有效。我要補充的另一件事是喬治提出的，從利潤率角度來看，這確實有幫助，並且可以提高毛利率。所以，所有這些感覺都為我們接下來的 25 場比賽和 26 場比賽做好了準備。

Okay, thanks for the details there, Mike. Maybe a follow up for George, how much of the installed base has now converted to all flash? And what's the mix of existing customers moving to flash versus new customers? And and what, what benefit have you seen from QLC? I mean, what percent of your flash business is now? QLC? Thanks for taking my questions.

好的，謝謝你的詳細信息，邁克。也許是喬治的後續行動，現在有多少安裝基礎已轉換為全快閃記憶體？遷移到快閃記憶體的現有客戶與新客戶的比例如何？您從 QLC 中看到了什麼好處？我的意思是，現在你們的快閃記憶體業務佔百分之多少？ QLC？感謝您回答我的問題。

I think with regard to our install base, it remains at the same number as last quarter, which is 40% our installed base is growing. So even if flash is growing fast, the total installed base is growing and it is very large. So that's the first indicator. The second is listen, we are outperforming the market and all of our competitors quite substantially. So it is clear that we are winning new wallet within existing customers as well as existing wallet as well as net new to Netapp customers. And we saw a lot of them at our insight conference. And so I feel really good about the book of business is balanced. And then with regard to TLC versus QLC, we're not going to break that out. I can just tell you that all of our flash product families did really well.

我認為我們的安裝基數與上季持平，即我們的安裝基數成長了 40%。因此，即使快閃記憶體成長很快，總安裝基數也在成長，而且規模非常大。這是第一個指標。第二個是聽著，我們的表現大大優於市場和所有競爭對手。因此，很明顯，我們正在贏得現有客戶中的新錢包以及現有錢包以及 Netapp 客戶的淨新錢包。我們在洞察會議上看到了很多這樣的人。所以我對商業帳簿的平衡性感到非常滿意。然後關於 TLC 與 QLC 的比較，我們不打算詳細說明。我可以告訴您，我們所有的快閃記憶體產品系列都表現得非常好。

Okay. Thank you for all the details. Appreciate it.

好的。感謝您提供所有詳細資訊。欣賞它。

Thank you.

謝謝。

Your next question today will come from Meta Marshall with Morgan Stanley. Please go ahead.

今天你們的下一個問題將來自摩根士丹利的梅塔·馬歇爾。請繼續。

Hi, this is Marion for Meta. I had a question on the A I momentum that you're seeing. You noted more than 100 wins during the quarter. Can you give a sense of what those deals look like? Have they been primarily public cloud premise or are they mostly a combination of the two? Thanks.

大家好，我是 Meta 的 Marion。我對你所看到的 A I 勢頭有疑問。您在本季度取得了超過 100 場勝利。您能大致了解一下這些交易是什麼樣的嗎？它們主要是公有雲前提還是主要是兩者的組合？謝謝。

These are, these are the 100 wins. We talked about our on premise wins. And you know, we disclosed the public cloud A I wins under the public cloud segment. You know, revenue, I think on the on premises side, there was a broad base of wins in terms of size, industry and geography, there were some clients that are in what we call proof of concept mode. There are others that are in large products, you know, early pilots that are product, pre production pilots. So it's a mix all over the place. We talked about the fact that it was broad based across the GEOS as well as broad based across industries.

這些是，這些是 100 場勝利。我們討論了我們的本地勝利。你知道，我們揭露了公有雲領域的公有雲A我勝。你知道，就收入而言，我認為在本地方面，在規模、行業和地理位置方面有廣泛的勝利基礎，有一些客戶處於我們所說的概念驗證模式。還有其他一些大型產品，你知道，早期試點是產品、預生產試點。所以到處都是混合的。我們討論了這樣一個事實，即它在整個 GEOS 以及各個行業都有廣泛的基礎。

Great, thanks. And just to follow up on free cash flow, you had noted the puts and takes on free cash flow this year, but do any of the dynamics that you're seeing this year change, how you think about the free cash flow trajectory for next year?

太好了，謝謝。為了跟進自由現金流，您已經注意到今年自由現金流的看跌期權和承兌，但是您今年看到的任何動態是否會發生變化，您如何看待明年的自由現金流軌跡年？

Thank you. Great. Question. So as we talked about the two big working capital is not issues, changes we've seen this year are around the payment of the annual incentive compensation and the previs and inventory. We're not going to guide 26 or call that yet. What I would say is from an incentive perspective, we do think that normalizes based on where we are in the year. So we don't think that will be nearly the working capital issue. It is this year, we will see where we are on pre buys. Do we do those going into next year or not? That is remaining to be seen. So we'll talk about that when we guide the year. But from an incentive comp perspective, that will normalize going into next year.

謝謝。偉大的。問題。因此，正如我們談到的兩大營運資金不是問題，我們今年看到的變化是圍繞年度激勵薪酬以及預視和庫存的支付。我們還不會引導 26 號或稱為 26 號。我想說的是，從激勵的角度來看，我們確實認為這種情況會根據我們今年的情況而正常化。因此，我們認為這幾乎不是營運資金問題。今年，我們將看到預購情況。我們是否會在明年進行這些工作？這還有待觀察。所以我們會在今年指導時討論這個問題。但從激勵補償的角度來看，這將在明年正常化。

Great, thanks.

太好了，謝謝。

Thank you.

謝謝。

And your next question today will come from David Vogt with U Bs. Please go ahead.

今天你們的下一個問題將來自 U Bs 的 David Vogt。請繼續。

Great. Thanks guys. George one for you to start. Can you maybe share some color on the success of the block portfolio in the flash numbers? And what maybe sort of the revenue sort of dynamic was in the quarter as well as any potential impact on margin, given sort of its new offering for you in a new market that you're really targeting aggressively. And that'll give you the second one. Also for Mike, you know, you mentioned obviously not taking any in any more purchase commitments for the balance of this year as you see some softening in NND. Can you remind us again, sort of the lag effect of NAN if it does roll over and soften a bit, what that would mean for pricing in the market and how that would affect product revenue growth over the longer term relative to your framework? Thanks.

偉大的。謝謝你們。喬治給你一個開始。您能否分享一些關於區塊投資組合在快閃記憶體數字中的成功的資訊？考慮到在您真正積極瞄準的新市場中為您提供的新產品，本季的收入動態可能是什麼，以及對利潤率的任何潛在影響。這會給你第二個。對於麥克來說，您知道，您顯然提到今年剩餘時間不會再做出任何購買承諾，因為您看到 NND 有所疲軟。您能否再次提醒我們，如果 NAN 確實發生滾動並稍微軟化，那麼它會產生某種滯後效應，這對市場定價意味著什麼，以及相對於您的框架，這將如何影響長期產品收入成長？謝謝。

We are pleased with the performance of the A S A product. It is bringing us a bunch of net new customers as well as expansions within our existing customers. And so we are, you know, excited, it's early in the cycle, but we are seeing good, very good momentum. I think with regard to, you know, the overall gross margin implications of that. Listen, I'll just say that we're not going to break out A S A versus other product families. I think overall our view is as we move the mix of our business more and more to flash, that should continue to be a tailwind to gross margins over time. And so we're executing our strategy. We feel good about where we are in terms of the overall portfolio and we're going to stay pedal to the metal.

我們對 A S A 產品的性能感到滿意。它為我們帶來了一批淨新客戶，並擴大了我們現有客戶的規模。所以我們很興奮，現在還處於週期的早期，但我們看到了良好、非常好的動力。我認為，你知道，這對整體毛利率的影響。聽著，我只想說，我們不會將 ASA 與其他產品系列區分。我認為總體而言，我們的觀點是，隨著我們的業務組合越來越多地轉向閃存，隨著時間的推移，這應該會繼續成為毛利率的推動力。所以我們正在執行我們的策略。我們對整體投資組合的現狀感到滿意，並且我們將繼續全力以赴。

And David on the related question on on pricing. Look, there have been a number of changes in the pricing environment. So as we look forward, what we tell you is and we said this all along customers budget on dollars. We're not assuming any significant change in revenue because of higher prices. So from that perspective. We'll have to see how it looks going forward. We feel good about the pre buys in terms of the rest of our fiscal '25. A little bit of that will drift into 26 but not really. We're looking at it every day so we'll update you on, on the revenue view and the margin of view as we get closer to 26.

大衛回答了有關定價的相關問題。看，定價環境發生了一些變化。因此，當我們展望未來時，我們告訴您的是，我們一直說客戶的預算是美元。我們假設收入不會因價格上漲而有任何重大變化。所以從這個角度來看。我們必須看看未來的情況如何。我們對 25 財年剩餘時間的預購感到滿意。其中一點點會漂移到 26，但事實並非如此。我們每天都會關注這個問題，因此當接近 26 日時，我們會向您通報收入視圖和利潤率視圖的最新情況。

Great. Thanks George. Thanks Mike.

偉大的。謝謝喬治。謝謝邁克。

Thank you.

謝謝。

And your next question today will come from Steven Fox with Fox advisors. Please go ahead.

今天你們的下一個問題將來自史蒂文·福克斯和福克斯顧問。請繼續。

Hi, good afternoon. I only had one question, George. I was wondering if you can expand a little bit on the comments around the partnership with Google cloud and how that's driving more highly high regulated customer business and public sector business. What are the, what are the early indicators? How quickly do you ramp into that sector more and more over time? Thanks.

嗨，下午好。我只有一個問題，喬治。我想知道您是否可以詳細談談與Google雲端的合作夥伴關係以及這如何推動更嚴格監管的客戶業務和公共部門業務。早期指標是什麼？隨著時間的推移，您以多快的速度越來越多地進入該領域？謝謝。

Our work with Google Cloud, started with their public cloud environment and then over about a year and a half, two years ago, we started to see clients together with Google that wanted the Google stack, but in their data centers. And so we started to work with them on an architecture called Google distributed cloud. We announced, you know, a set of customer wins as well as the broader partnership with Google earlier this year. And we are seeing good momentum. It's still early, these are large scale deployment, it's still early, but we are super pleased that both the capability set that the full technology stack offers. It is entirely wallet expanding for us and the unique value that we bring to clients with Google is a consistent experience between their data centers and public cloud as well as the, you know, private cloud or on premises environments that customers have.

我們與 Google Cloud 的合作始於他們的公有雲環境，然後在大約一年半、兩年前，我們開始看到客戶與 Google 一起想要 Google 堆疊，但在他們的資料中心。因此我們開始與他們合作開發一個名為 Google 分散式雲端的架構。今年早些時候，我們宣布贏得了一系列客戶，並與Google建立了更廣泛的合作關係。我們看到了良好的動力。現在還為時過早，這些都是大規模部署，還為時過早，但我們對完整技術堆疊提供的功能集感到非常高興。這完全是我們錢包的擴張，我們為Google客戶帶來的獨特價值是他們的資料中心和公有雲以及客戶擁有的私有雲或本地環境之間的一致體驗。

Great. It seems like a great opportunity. Thank you.

偉大的。這似乎是一個很好的機會。謝謝。

Yeah, we're excited. Thank you.

是的，我們很興奮。謝謝。

Your next question today will come from Aaron Rakers with Wells Fargo. Please go ahead.

今天你們的下一個問題將來自富國銀行的 Aaron Rakers。請繼續。

Yeah, thanks. Thanks for fitting me in. I, I guess my question is going back to, you know, earlier point just to make clear and, and maybe push back a little bit. Is that, you know, last quarter, I think you talked about your, you know, first party and hyper scale marketplace, you know, storage services, I think was, you know, grew north of 30%. I think in that context you had alluded to that, that contribution was about two thirds of that public cloud piece of business. So now you've got, you know, I want to make sure I'm understanding today. It sounds like, is it, did I hear it right? It's now about 80% of that public cloud business. And if so, why would, why would mid teams growth be right? Why wouldn't it accelerate much higher as we start to see the, you know, lack of growth in the in the declining business really become significantly smaller? I'm just trying to understand if, if that's maybe conservatism or if there's something else there.

是的，謝謝。感謝您讓我參與其中。上個季度，我想您談到了您的第一方和超大規模市場，您知道，儲存服務成長了 30% 以上。我認為在這種情況下，您已經提到過，該貢獻約為公有雲業務的三分之二。所以現在你知道，我想確保我今天理解了。聽起來，是嗎，我沒聽錯吧？現在它約佔公有雲業務的 80%。如果是這樣，為什麼，為什麼中隊的成長是正確的？當我們開始看到，你知道，衰退業務中缺乏成長的情況確實變得顯著縮小時，為什麼它不會加速得更高？我只是想了解這是否可能是保守主義，或者是否有其他原因。

Yeah. Hey Erin, it's my excel. Sorry if I confused it. So the out of the total cloud revenue number, first party and marketplace was a little less than half when we did the analyst day in June, that percentage increases more and more every day. The 80% number I referred to was consumption revenue which includes more than just first party marketplace. There's other products in there as well to your point. It's why we feel really good about the growth going forward is that that piece of the business gets bigger every day. The part that's not growing gets smaller every day. So we do feel good about the growth going forward. We'll see how the rest of the year unfolds.

是的。嘿艾琳，這是我的Excel。抱歉，如果我混淆了。因此，當我們在 6 月的分析師日進行分析時，第一方和市場的雲端總收入數量略低於一半，並且該百分比每天都在增加。我提到的 80% 數字是消費收入，其中不只包括第一方市場。那裡還有其他符合您觀點的產品。這就是為什麼我們對未來的成長感到非常滿意，因為這部分業務每天都在擴大。不生長的部分每天都在變小。因此，我們確實對未來的成長感到滿意。我們將看看今年剩餘時間的情況如何。

Thanks Erin.

謝謝艾琳。

Thank you.

謝謝。

And your next question today will come from Louis Misia with dial. Please go ahead.

今天你們的下一個問題將來自Louis Misia with dial。請繼續。

Yes with that.

是的。

With that. Thanks for taking it. Well, let me just blend I guess two questions into one. You know, it looks like obviously the Americas was a little bit stronger from Europe. So any comment on just a European demand, it seems the economies are maybe a little bit slower there and then could the difference be that the US is actually doing better trying to deploy A I applications in comparison to Europe? Thanks. Thank you.

就這樣。謝謝你接受它。好吧，讓我把我猜的兩個問題合而為一。你知道，看起來美洲明顯比歐洲強。因此，任何關於歐洲需求的評論，似乎那裡的經濟可能有點慢，那麼差異是否在於，與歐洲相比，美國實際上在部署人工智慧應用方面做得更好？謝謝。謝謝。

Listen, I think our team in Europe has outperformed. We have, you know, yes, you're correct about the macro in Europe. It is still choppy in some parts of the European economy. But our team has outperformed with regard to the America's business. Listen, the new leadership team has done a really good job and I'm super excited at our ability to outperform in a really in the largest market in the world. I think that our Book of Business, you know, I don't think there was anything fundamental. Yes, there were more wins in North America for A I. But I don't think it was fundamentally different. I think our business overall in North America performed exceptionally well across all segments and it was just execution across a broad range of customer demand.

聽著，我認為我們歐洲的團隊表現出色。我們有，你知道，是的，你對歐洲宏觀經濟的看法是正確的。歐洲經濟的某些領域仍然不穩定。但我們的團隊在美國業務方面表現出色。聽著，新的領導團隊做得非常好，我對我們在世界上最大的市場中表現出色的能力感到非常興奮。我認為我們的商業手冊，你知道，我不認為有什麼根本性的東西。是的，A I 在北美取得了更多的勝利。我認為我們在北美的整體業務在所有領域都表現得非常好，這只是滿足了廣泛的客戶需求。

Okay. Congrats on the numbers.

好的。恭喜你的數字。

Thanks next question.

謝謝下一個問題。

Please.

請。

And your next question today will come from Ananda Baruah with loop capital. Please go ahead.

今天你們的下一個問題將來自循環資本的 Ananda Baruah。請繼續。

Hey, thanks guys, appreciate it. I guess George question maybe in a little clarification. So the new High end, here's kind of the question, the new high end A S A products. How, how important is that to to the A S A product line? Is it as important as the mid range for as the mid range product that you introduced a little while ago? Those have made a really big impact and then sort of in the prepared remarks, the comments about new customer, a new customer acquisition, which you referenced a few times on the call is that directly related to the new high end products or I guess to what degree has the new high end products actually led to the new customer acquisition? And, and that's it for me. Thanks.

嘿，謝謝大家，感激不盡。我想喬治可能會問一些澄清的問題。所以新的高端，這是一個問題，新的高端 A S A 產品。這對於 ASA 產品線有多重要？對於您剛剛推出的中端產品來說，它和中端產品一樣重要嗎？這些產生了很大的影響，然後在準備好的評論中，關於新客戶、新客戶獲取的評論，你在電話中多次提到，這些都與新的高端產品直接相關，或者我想新的高端產品實際上在多大程度上帶動了新客戶的獲取？對我來說就是這樣。謝謝。

I think our flash portfolio as you know, we refreshed the unified A FF products and then we re you know, refresh the the A S A products, these have seen strong reception. I think with regard to new customers, you know, over time, you will see the mid range bring new customers because the majority of net new logos to Netapp come from smaller the commercial market. But the high end products are enabling us to win wallet share within existing customers. Block wallet share is is entirely new to Netapp. We've never sold a block optimized product before. So it's all net new wallet for us. And so we're excited at the reception to those products. The Unified product has continued to strengthen our position and customers who want a consolidated data center infrastructure, more of the classic sales motion of Netapp. And so I think across the board, our flash, I mean, 19% year on year is a super strong number. It's the fourth consecutive quarter in that kind of you know, kind of altitude and all of our products have done really, really well. So I'm really excited about the year ahead.

我認為我們的快閃記憶體產品組合如您所知，我們更新了統一的 A FF 產品，然後我們更新了 A S A 產品，這些產品受到了強烈的歡迎。我認為關於新客戶，您知道，隨著時間的推移，您將看到中端產品帶來新客戶，因為 Netapp 的大多數淨新徽標都來自較小的商業市場。但高端產品使我們能夠在現有客戶中贏得錢包份額。區塊錢包共享對於 Netapp 來說是全新的。我們以前從未銷售過塊優化產品。所以這對我們來說都是全新的錢包。因此，我們對這些產品的受歡迎程度感到興奮。統一產品繼續鞏固了我們的地位和需要整合資料中心基礎設施的客戶，更多的是 Netapp 的經典銷售動作。所以我認為，從整體來看，我們的快閃記憶體年增 19% 是一個非常強勁的數字。這是連續第四個季度處於這種高度，我們所有的產品都做得非常非常好。所以我對未來的一年感到非常興奮。

Thank you.

謝謝。

On the.

上。

Next question.

下一個問題。

Your next question today. Will come from Chris Thar with TD Cowen. Please go ahead.

今天你的下一個問題。來自 Chris Thar 和 TD Cowen。請繼續。

Hey guys, this is Eddie for just a clarification regarding the first party hyper scale service question. You, you talked about like 43% growth rate. Just want to make sure like is, is the conversion that's taking place from subscription to hyper scale services contributing in any material way to that? 43% number.

大家好，我是艾迪，我想澄清一下第一方超大規模服務問題。你，你談到了 43% 的成長率。只是想確保從訂閱到超大規模服務的轉換是否對此有任何實質貢獻？ 43%的數字。

There's some modest conversion, it's not a significant percentage. There's a large number of net new to Netapp customers as well as significant expansions of existing customers. And all of the hyperscaler services did extremely well. So, you know, yes, there were a few but it was not material to the number.

有一些適度的轉化，但比例並不大。 Netapp 擁有大量新客戶，現有客戶也大幅增加。所有超大規模服務都表現得非常好。所以，你知道，是的，有一些，但對數量來說並不重要。

Got it. That's super helpful George and maybe just a follow up on the gen A I topic. And using the A I deals you talked about today as an example, what pushed these customers to buy more storage? Was it just them setting up a new GP U clusters and they need new storage equipment or is it more like an upgrade to existing infrastructure so that they can feed their data lakes from it? Thank you.

知道了。這對喬治非常有幫助，也許只是第一代主題的後續。以您今天談到的 A I 交易為例，是什麼促使這些客戶購買更多儲存空間？他們只是建立了一個新的 GPU 叢集並且需要新的儲存設備，還是更像是現有基礎設施的升級，以便他們可以從中提供資料湖？謝謝。

It's a combination. There were a good number of them that were building GP clusters, both superpods and you know, kind of base pods that we saw where they were essentially running the GP US against high performance file systems from netapp and some that were building data lakes because their data was so scattered that they wanted to bring it together and they chose our infrastructure to power the data lake. So a mix of them inferencing, you know, early in the cycle, we just brought to general availability, our full stack with Lenovo, for example, with ODX and we're doing creative work with NVIDIA around some of their software that Jensen referred to on their call yesterday.

這是一個組合。其中有許多人正在建立 GP 集群，包括超級 Pod 和我們看到的基本 Pod，它們本質上是針對 NetApp 的高效能檔案系統運行 GP US，還有一些正在建立資料湖，因為它們的資料如此分散，以至於他們希望將其整合在一起，因此他們選擇了我們的基礎設施來為資料湖提供動力。因此，他們的混合推斷，你知道，在周期的早期，我們剛剛與聯想推出了全面的可用性，例如，通過 ODX，我們正在與 NVIDIA 圍繞 Jensen 提到的一些軟體進行創意工作昨天接到他們的電話。

Got it. Thank you at eight. Next question.

知道了。八點謝謝你。下一個問題。

Your next question today will come from Nihal Chasi with Northland capital markets. Please go ahead.

今天你們的下一個問題將來自北國資本市場的 Nihal Chasi。請繼續。

Yeah, thank.

是的，謝謝。

You. Got some strong results. At insight. You guys introduced your A I vision which is quite expansive and I believe that has some forward-looking product developments. One of those four product for product development I believe is correct me if I'm wrong, it's the decoupling, the scaling of data management compute and data source. Is that correct?

你。取得了一些強勁的成果。於洞察。你們介紹了你們的 A I 願景，該願景相當廣泛，我相信其中有一些前瞻性的產品開發。如果我錯了，我相信這四種產品開發產品之一是正確的，它是資料管理計算和資料來源的解耦、擴展。這是正確的嗎？

I'm sorry, could you repeat the question?

抱歉，您能重複這個問題嗎？

Yeah. One of the elements of the forward-looking A I vision as far as how netapp's portfolio may evolve is the decoupling of the scaling of the data management compute and the data management storage components. I, is that correct? That, that's, that's a correct. Yeah, that's right.

是的。就 netapp 產品組合如何發展而言，前瞻性 AI 願景的要素之一是資料管理運算和資料管理儲存元件的擴展的解耦。我，這樣說對嗎？那，那，那是對的。是的，沒錯。

That is one of the elements.

這是要素之一。

Yeah. And how long do you expect to, to before you can really introduce that? And how heavy of a lift is this? Is this more like a, you know the lift it took to go to clustered on tap or is it more like the lift it took to optimize for flash?

是的。您預計需要多長時間才能真正介紹這一點？這個電梯有多重？這更像是，你知道它需要在水龍頭上聚集的提升，還是更像是優化快閃記憶體所需的提升？

We have been working on scaling out our architecture over many, many years, right? And so this is not anywhere near the list of clustered on that. As we said, we expect to have, you know, these solutions deployed in customers by the end of next calendar year. So we're excited, we're making really good progress on it. Stay tuned. We'll tell you when we make those solutions of generally available.

我們多年來一直致力於擴展我們的架構，對吧？因此，這並不在聚集於此的清單中。正如我們所說，我們希望在明年年底之前為客戶部署這些解決方案。所以我們很興奮，我們在這方面取得了很大的進展。敬請關注。當我們普遍提供這些解決方案時，我們會告訴您。

Great. Thank you very much.

偉大的。非常感謝。

Thanks. All your final question today will come from Ari Danian with Cleveland Research Company. Please go ahead.

謝謝。今天的最後一個問題將由克利夫蘭研究公司的 Ari Danian 提出。請繼續。

Hi, thanks for taking the question. Nice to meet you and congrats on the good results. First, just a clarification on the A I deals that 100 is that deals in the quarter. And if so that like what drove the doubling from 50 last quarter? It's pretty strong results and then just as pertains to, you know, the SSD pricing and whatnot, you know, to the extent that there are any pricing actions you know, to, to your products. Do you think there was potentially any pull forward of demand or do you anticipate any impact from any pricing changes? Thank you.

您好，感謝您提出問題。很高興認識你並祝賀取得的好成績。首先，對 A I 交易進行澄清，100 是該季度的交易。如果是這樣的話，是什麼推動了上季 50 倍的成長？這是相當強勁的結果，就像你知道的那樣，SSD 定價等等，你知道，就你知道的產品的任何定價行為而言。您認為需求是否有可能提前，或者您預期價格變動會產生什麼影響嗎？謝謝。

With regard to the A I deals. Listen, it's just broader engagement with customers. These deals are, you know, large deals or you know, take a long sales cycle, right. So our teams have been working on these for a while. And so we just saw broader engagement across our field teams and our partner base to accelerate the pipeline. We have a good outlook for that business and I'm excited about the prospects of it. I'll hand it to Mike for the second question.

關於 A I 交易。聽著，這只是與客戶更廣泛的接觸。你知道，這些交易都是大額交易，或者你知道，需要很長的銷售週期，對吧。所以我們的團隊已經在這些方面努力了一段時間。因此，我們看到我們的現場團隊和合作夥伴群體更廣泛地參與，以加速管道的建造。我們對該業務前景看好，我對此感到興奮。我將把第二個問題交給麥克。

Hey, Ari, nice to meet you as well. So, so there have been some pricing changes on, on some of our products. What we say is, hey, every quarter there there's always pull forwards and and pushes from a revenue perspective. Nothing material though. And keep in mind that those tend to take a while to work through the pipeline as well. So we do expect to have some impact going forward, but we'll have to see how the rest of 25 goes.

嘿，阿里，也很高興認識你。所以，我們的一些產品的價格發生了一些變化。我們所說的是，嘿，每個季度從收入的角度來看總會有前推和推動。不過沒什麼實質內容。請記住，這些往往也需要一段時間才能完成。因此，我們確實預計會產生一些影響，但我們必須看看其餘 25 個項目的進展如何。

Thanks. All right.

謝謝。好的。

Well, thanks Ari. I appreciate your question and I'm going to turn it over to George for some final comments.

嗯，謝謝阿里。我很感激你的問題，我將把它轉交給喬治，以獲得一些最後的評論。

Thanks, Chris. We are focused on enabling customers to build intelligent data infrastructures with our uniquely differentiated solutions for flash block, cloud storage and A I.

謝謝，克里斯。我們致力於透過我們針對快閃記憶體塊、雲端儲存和人工智慧的獨特差異化解決方案，幫助客戶建立智慧資料基礎架構。

These solutions address markets which are bolstered by both secular and company specific tailwinds and represent our biggest opportunities to fuel revenue growth and increase market share. Our pace of innovation has never been stronger.

這些解決方案針對的是長期和公司特定有利因素支撐的市場，代表了我們推動收入成長和增加市場份額的最大機會。我們的創新步伐從未如此強勁。

We are executing well, clearly outgrowing the market and all of our competition in each of our key growth markets, our focused and disciplined operational management positions us well, for continued customer and shareholder success.

我們執行得很好，明顯超越了市場和我們在每個關鍵成長市場的所有競爭對手，我們專注且嚴格的營運管理使我們處於有利位置，可以持續為客戶和股東帶來成功。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。